A Company Introduces a New Product in the Market

question 82

Multiple Choice

A company introduces a new product in the market. The company decides that the only way it could attract customers is to keep the price of the product lower than what its competitors charge. Which of the following disadvantage would the company face because of the strategy it proposes to follow?

• A) Low prices for goods and services always lead to low customer base for the company.
• B) Downplaying research and development can slow the company's ability to respond to changes once they are detected.
• C) The company's strategy would make it vulnerable to price competition from rivals.
• D) The company's strategy would break down barriers to entry that protects the firm from new competition.
• E) The presence of such a company would have the effect of discouraging new firms from entering the business.

Recognize the role of ethical codes and conduct in shaping business practices and decision-making.

Understand the humanistic theories of motivation and their focus on achieving one's highest potential.

Grasp the concept that motivation can be influenced by both biological and psychological factors.

Recognize the importance of arousal and environmental factors in motivating behavior.

---

Definitions:

Normative Orientation

The adherence to prescribed norms or rules of social behavior that are accepted within a group or society.

Acceptable Behavior

Actions or conduct considered appropriate or permissible within a certain social, cultural, or organizational context.

Cognitive Map

An internal representation of the spatial relationships between objects in the individual's environment, crucial for navigation and understanding the surroundings.

Orientation

The process of familiarizing a person with new surroundings, situations, or information, often used in educational and professional contexts.